California Proposition 2 — Increases State’s Rainy Day Fund

Ballot measure · November 3, 2026

What it does
Increases California’s Rainy Day Fund, approved by voters in 2014, to provide funding for education, health care, public safety, and other essential services during economic downturns. Doubles the budget reserve cap from 10% to 20% of General Fund revenues, requiring savings until Fund’s balance equals 20% of General Fund. Requires additional savings in years when tax revenues are high. Increases budget reserves available for education, state debts, and pension obligations. Summary of Legislative Analyst's estimate of net state and local government fiscal impact: State budget reserves would be higher.
A YES vote means
Rules for building state budget reserves and paying down extra state debts would change. As a result, state budget reserves would be higher. The state also would be required to make extra debt payments for longer.
A NO vote means
Rules for building state budget reserves and paying down extra state debts would not change.
Needed to pass
A simple majority
Put on the ballot by
the Legislature

Official text: source

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